Gold-Mining Stocks Fall to 4 1/2-Year Low: Johannesburg Mover

South Africa’s gold-stocks gauge
fell to the lowest level in in 4 1/2 years as the price of the
metal retreated.

The FTSE/JSE Africa Gold Mining Index (JGOLD) declined as much as
7.4 percent and was 7.3 percent lower at 1,504.95 by 10:41 a.m.
in Johannesburg, the six-member gauge’s lowest intraday level
since Nov. 21, 2008.

Gold for immediate delivery fell as much as 3.9 percent to
a two-year low on expectations that demand for haven assets will
contract as the global economy improves. South Africa is the
world’s fifth-biggest producer of the metal.

“Sentiment toward the gold sector is very despondent,”
Simon Fillmore, chief executive officer of Independent
Securities (Pty) Ltd., said by phone from Johannesburg. “Gold
shares have been destroyers of shareholder value over a long
period of time.”

Harmony Gold Mining Co. (HAR) slumped 9.1 percent to 45.49 rand,
the lowest level in almost eight years, making it the index’s
worst performer. AngloGold Ashanti Ltd. (ANG), the world’s third-
biggest producer of the metal, declined 7.8 percent, the biggest
drop on an intraday level since May 18, 2009, to 173.78 rand.

The gold-mining gauge’s 14-day relative strength index
slipped below 30 on April 11 and was at 19, the lowest level
since April 10, 2012. A reading below 30 signals to technical
analysts a security is undervalued and poised to rebound.